As an alternative to POW, Proof-of-Stake was conceptualized by Sunny King and Scott Nadal in 2012. They had several goals centered around making mining more “green” and “fair”. Miners would be randomly chosen by the system, no energy would be wasted by having computers solved complicated math problems, and instead of mining, users could invest directly into the coins; they would not have to set-up and maintain expensive mining rigs. Just like in POW, it would be unreasonable for a user to commit a fraud attack on a proof-of-stake system, unless they would be able to steal more money than they would lose by forfeiting the sum of their deposits (which is unlikely).

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